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begin{tabular}{|l|} hline Question 8 Not yet saved Marked out of 1.00 Remove flag end{tabular} You're a stock analyst trying to forecast
\begin{tabular}{|l|} \hline Question 8 \\ Not yet saved \\ Marked out of \\ 1.00 \\ Remove flag \end{tabular} You're a stock analyst trying to forecast a firm's operating free cash flow (OFCF, which excludes interest tax shields) based on figures from your forecast cash flow statement. Assume that the: -Debt liabilities are priced at par, so interest expense (IntExp) equals actual interest payments. This means that interest expense is a cash flow, so interest expense is not added back to net income in the 'operating activities' section of the cashflow statement; - 'Net cash provided by investing activities' is equal to negative one multiplied by the firm's positive capital expenditure. - 'Net cash provided by financing activities' is equal to negative one multiplied by the firm's dividend payments. -Corporate tax rate is 30%. OFCF equals 'Net cash provided by operating activities' plus: a. 'Net cash provided by investing activities'. b. 'Net cash provided by investing activities' plus Int Exp(1tc). c. 'Net cash provided by investing activities' plus IntExp. d. 'Net cash provided by financing activities' plus IntExp*(1-tc). e. 'Net cash provided by financing activities' plus IntExp
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